NZX expands global reach
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Wednesday, 03 September 2008 |
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Exchange operator NZX has signed a deal to underwrite the Bond Exchange of South Africa's (Besa) 80 million rand ($NZ15 million) capital raising.
NZX was unable to comment on the deal until after bond exchange shareholders voted on the rights issue at the annual meeting in Johannesburg on September 29, NZX spokeswoman Rowan Macrae said.
The deal had received regulatory approvals from the South African Financial Services Board.
An underwriter bears the risk of a capital raising, receiving a fee for guaranteeing a certain price to the issuer.
This was the first such arrangement the NZX had entered into, and it was looking at opportunities all the time, Ms Macrae said.
Besa operates and regulates the South African bond market, and last year reported record bond market turnover of 13.8 trillion rand.
Besa was raising capital to develop its bond business and to grow in other directions.
NZPA
